Russian Aquaculture spends £27m as it targets growth
Salmon and trout farmer Russian Aquaculture invested 2.5 billion roubles (£27 million) last year as part of its continuing expansion, which also saw it almost treble its sales volume from 6,776 tonnes in 2018 to 18,070 tonnes.
Investments included a smolt plant from AKVA, a second wellboat, a four-line de-lousing barge from Norway’s FSV Group, new cages and other fish rearing equipment.
In a press release, chief executive Ilya Sosnov said: “Thanks to the systematic implementation of our strategy, we managed to attain a high degree of financial and operational sustainability. We were able to make major investments which were almost completely funded by operating cash flow.”
Operating as usual
Sosnov stated that it was too early to say how the Covid-19 pandemic would affect business.
“We have taken all necessary measures and continue to operate as usual, ensuring the continuity of production processes and product deliveries to our customers,” said the CEO.
“At the same time, we continue to monitor the situation and are ready to adapt if necessary. Our priorities today, as always, are the safety of our employees, consumers and contractors, as well as ensuring business continuity while minimising operational and financial risks.”
Annual stocking
Highlights of 2019 included the transition to annual stocking, monitoring the full rearing cycle, the well-functioning organisation of feed supplies, and the company’s successful development of its own sales system.
Increased sales volumes supported growth of revenue and adjusted EBITDA to RUB 8.8 billion and RUB 3.4 billion, respectively.
Russian Aquaculture is the country’s largest commercial fish farmer. It farms both Atlantic salmon and sea trout in the Barents Sea in the Murmansk region, and rainbow trout in the lakes of the Republic of Karelia, which borders Finland.
It owns the cultivation rights to 36 sites for salmon and trout which offer a potential production volume of 50,000 tonnes.
